Economy

The Deficit Exploded in the First Quarter

Written by SK Ashby

For an update on Fiscal Responsibility, the Treasury Department tells us that the federal deficit exploded during the first quarter of the year which began on October 1st, 2018.

While Republicans still had total control of the government, they set us on a path that has resulted in the deficit increasing by 77 percent year-over-year.

The deficit grew 77 percent in the first four months of fiscal 2019 compared with the same period one year before, Treasury said.

The total deficit for the four-month period was $310 billion, Treasury said, up from $176 billion for the same period one year earlier. [...]

Tax revenue for October 2018 through January 2019 fell $19 billion, or 2 percent, Treasury said. It noted a major reduction in corporate tax payments over the first four months of the fiscal year, falling close to 25 percent, or $17 billion.

It's not as if the federal deficit is the most pressing concern of the day, but every single person reading this will be asked to pay for it in one way or another. And you won't be paying for something worthwhile.

Republicans didn't exploded the deficit in the name of fighting climate change or poverty or some other issue of great societal importance; they exploded it to redistribute wealth from average Americans to people who were already the richest people in the world before they received another tax cut.

But don't worry, Trump's top economic adviser says the Trickle Down Fairy will fix everything soon enough.

White House economic adviser Larry Kudlow on Tuesday acknowledged that national debt as a share of GDP has “inched up a bit,” but added in an interview on Fox News: “We are making an investment in America’s future … and if that means we incur some additional debt in the short run, so be it.”

Kudlow said “Growth solves the problem,” and predicted that the deficit-to-GDP ratio will come down with growth. “That will solve all of these problems and people will be very prosperous.”

Someone is going to be even more preposterous than they already were, but not anyone that's reading this.

Federal and private economists are projecting that economic growth will slow over the next two years and it's possible we may even enter a recession before the next presidential election.